Four days before the Legislature convened, Gov. Butch Otter
offered a cryptic answer when I asked if his vow to restore school funding
still stood.

“I have not relieved myself of my commitment to make sure
that the last dollar taken is the first dollar replaced — and that was
education,” Otter said Jan. 5.

As another questioner spoke, Otter interrupted. “Within our
ability to do so,” he said, laughing. “Let me put it that way.”

It turns out the joke is on Superintendent of Public
Instruction Tom Luna, Otter’s partner in 2011’s Students Come First laws.

Otter’s budget follows the letter of the new law, removing
money the state gives school districts for salaries for teachers,
administrators and support staff. Instead, the cash buys computers for students
and funds a “pay for performance” plan.

But Luna, eyeing the first surplus in four years, has
seller’s remorse. He seeks to remove the most politically powerful argument
against his plan: that it cuts teacher pay and increases class size.

To make Luna’s 1-to-1 computer mandate and pay for
performance work, Otter and lawmakers agreed to strip $57 million from
salaries, spread over four years, for an overall shift of 6.2 percent. This
fiscal year, $14.8 million was moved. Next year, the transfer is $19.7 million.

Otter recommends $38.8 million for pay for performance for
15,000 teachers now averaging $45,000 a year. If revenue meets expectations, he
would add $41.1 million for one-time bonuses for state workers, with $25.5
million of that for teachers.

Beyond that, Otter has other priorities, including $45
million for tax cuts, $60 million for savings accounts and $5 million for a new
program to stimulate tech jobs.

On the same day Otter revised his schools-first promise, he
met with an unhappy Luna. According to one account, Luna and Otter Deputy Chief
of Staff Roger Brown were yelling at one another. Another source told me it was
simply a long “give and take.”

Luna said he wouldn’t talk to me because he believes I’m
trying to drive a wedge between him and the governor. Otter also declined
comment, saying, “No. Nada. Nothing.”

Their spokespersons said there was no yelling. “It was a budget
discussion,” said Luna’s Melissa McGrath.

When I asked Brown whether he “got into it” with Luna, he
said: “I’ve heard that. I’m sorry, I can’t be more helpful.”

The stakes are high. Luna wants to defeat three referendums
on the November ballot that would repeal Students Come First. Luna opponents
gathered 220,000 signatures to force a vote, and lawmakers who backed the law
are nervous about their hides, too. More pressure comes from the end of $49
million in federal funds, which means that Otter’s recommendation for K-12
spending of $1.537 billion is a 1.5 percent drop in 2012-13.

“I’m happy that Tom wants it because I want it,” Sen. Mitch
Toryanski, R-Boise, said of restoring the salary money. “It’s the best of both
worlds: Give them the full amount they got last year, in addition to pay for
performance. The people who support reform really want to treat the teachers
well and fairly.”

Rep. Fred Wood, R-Burley, is a budget committee member who
defends sticking with the reform budget. “The governor funded that just exactly
as the law says.”

“I called the meeting,” Thompson said. “I think anybody that
voted for Students Come First would like to see it backfilled. Teachers are
extremely valuable. They are educating the future of our state.”

Thompson said one source of money would be trimming Otter’s
call to put $29 million in the public school savings account. “That fills the
gap,” he said.

Mortimer said he’s not decided on filling the hole but said
there is “political will to get as much money as possible for schools.” He
echoed Bell’s concern about a one-time bonus. “Do you take $19 million away and
give ’em $25 million? To me, that’s weird accounting.”

Lawmakers who voted for the reforms are spooked. Opponents
also want money restored. Together, they likely have the votes.